If you need a $10000 personal loan then you have a few options. Which options you have will vary according to your credit score and history – with those who have good credit gaining access to a few more financing channels than those with bad credit. In this article we will discuss two of the main strategies for getting such financing with good credit – secured loans and unsecured loans.
Secured Loans for $10,000
A secured loan is one that requires you to put down some type of asset to secure the loan. Stocks, bonds, homes, insurance policies, and CD’s are very common instruments that people use to secure such loans. Essentially, what the term ‘securing’ means is that the bank can go after and take possession of the asset pledged in case of default on the loan, thus lowering the borrower’s risk profile – which can reduce the cost of the loan. Advantages of such loans include the following:
1) Lower interest rates than other types of loans
2) Fairly fast processing – you can usually get your cash withing 2 business days, with some being offered next business day
3) You get fixed monthly payments
4) You have a set amortization schedule
Unsecured Personal Loans for $10,000
Unsecured 10000 personal loans are loans where you don’t have to put up any type of asset to back the loans. They are often referred to as ‘signature loans’ since the only thing backing them is your credit history, which makes the borrower’s risk profile increase, thus increasing the risk the bank must take. These types of loans are great if you have good credit, but can be very difficult to get if you have bad credit (there are lenders that make bad credit loans, but they generally won’t give up to $10,000). The main disadvantage of unsecured loans is that they cost more than secured loans, because of the increased risks to the bank and they certainly fall under the category of high risk personal loans.